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tv   MONEY With Melissa Francis  FOX Business  August 16, 2013 5:00pm-6:01pm EDT

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minutes. who will be digging through all the details in the language to see if the fed gives any cancer clues on when it will begin. david: we hope you join us on monday. money is next. >> i'm charles and for melissa. here is what is "money" tonight. warren buffett, the oracle of of law unveils the new apple. should you be falling in is the? will break out our own crystal ball and get the answers. may surprise you. plus, it is franchise friday. the perfect vacation. and you made "money" today? is a when they say it's not all we always know it's about "money."
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♪ charles: we began with the man himself, warren buffett, banking on some new companies. could they make you money? brookshire hathaway unveiled its latest holdings. is the oracle of all mob prophesied before your portfolio? here to tell us is the man himself. he is the capitalist. also a fox news contributor. a lot of changes in the portfolio. so many people try to the trade like warren buffett. is that a wise thing for the average viewer? >> title think it is. they should just by berkshire hathaway and literally let him make the investment decisions. i think investing is really about independent thinking. to blindly follow any new route from warren buffett to george soros to carl icahn is the epitome of second kendis when it
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comes to the stock-market. you have to take responsibility for your own money which means making your own decisions. charles: and warren buffett is in a position now, he has always been a long, long, long term, but he is a position where you can beat ron furlong amount of time. the average person may not be okay to be wrong for two or three years. >> and he is wrong all the time. as most investors are. he's a wonderful investor. i can remember very acutely back to late 1990's. he basically missed the entire internet run-up in technology stock run-up. one guy with one opinion. warren buffet is 80 years old. my grandfather is 80. we don't even let him use the remote control, let alone pick stocks for portfolio. with all respect, people need to make their own decision. charles: you are cold-blooded. the me tell you, let's go for some of these ideas.
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less talk about some of the things that are new or that he has added to his portfolio. suncor. a lot of people are saying this is a hypocritical play on his an energy play. is it a smart play? >> i think it is. i mean, and less than either the environmental regulatory concerns continued to grow or the economy really falls off a cliff energy is what drives the economy. companies exploiting these canadian oil sands are at the cutting edge of not apply in the sky green energy but actual fossil fuels that we can exploit and use the power of the world today. a big company, strong holding, but keep in mind, warren buffett cannot go find these small little gems. he's a huge investor, so he has to buy shares of companies. he can take even a tiny small position. charles: dish network. i like the owners story. you know, this is such a competitive world. i don't know who to pick any
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more. >> it is incredibly competitive, but as you know, it is strong, especially over the last symbol of months. a lot of the advertising and media related stocks have been exceptionally strong. he loves the town newspaper, the media delivery device. so basically an extension of that. not a reoccurring more predictable revenue. competitive and consolidating space. i would not fight-either. both of these are large cab blue-chip plays that will follow the broad spectrum of the s&p in the market at large. charles: he loves cash flow, consistent, steady, predictable cash flow. general motors seems like a tough one. i'm not too much to a fan of the company. >> it got its pop interestingly enough and it was not the government would show -- so the majority stake. he had to take that with the big grain of salt. worries me, even as the s&p 500
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down have been a multi-year all-time highs, gm and ford really lag. they have not made. the fact that the other makers are underperforming to meese's stay away. charles: i want to let the audience know, you mentioned that he is a newspaper guy. he sold his holdings in the net. the moral of the story is you're a billionaire in ten of these, but as an investment with other people piggybacking, maybe this is not the place you want to be. i tell you what, investors may be wrong to follow all of these big time icons. they really belong to follow you have a great weekend. he zips day of rage wasted 75 dozens more deaths. the country to the brink of civil war. is it time for president obama to get off the sidelines and intervene? much more -- after this. ♪
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we replaced people with a machine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally. ♪ charles: now turning to the middle east, the explosive and deadly violence in egypt is not letting them. today was marked by a day of rage as supporters of the ousted
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president led the way. more than 60 people killed with the death toll approaching 700 for the week. we're sitting here watching this massacre. the question is, what will it take to make a stop? with me now, egyptian expert. senior fellow at the cato institute to says it will have to cut off all u.s. aid to the country welcome to both of you guys. but start with you. cutting off aid is something that we have heard for a long time, even when the muslim brotherhood had the power there a lot of people thought we should not be aiding them, but now it is resonating. it sounded like perhaps president obama hinted that could be the next at. >> a could be the next up, but i don't believe this the minister hisham wants to take that step. wants to believe it as leverage and influence. the tragedy is we don't. we have no influence as long as the military believes that it is going to receive the money it
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has no reason to take your advice and it has not done so so far. the spa we are being tied to a regime which is shut down hundreds of people. the very messy situation. it's a momentous step back. we really don't want to be associated with what is going on if we can't influence events we really need to step back and not be influenced and tied to them. charles: to that point a lot of people are wondering why we are so intricately tied to this nation to the point where we send their military over a billion dollars every single year. the death toll now to 700. why do we have such a connection an obligation? >> inky for having me. i disagree on the issue whether now we have the ability to influence what is happening. we are choosing not to influence was happening which is decision made by the ministration. i will believe it to political analysts. charles: i'm going to let doug
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talk to you on that, but why would we choose not to? why would we just hand over the money and sort of be a bystander to this slaughter is going on? >> we are bystander to the certain extent. we see that it is perhaps a one time event. we see out of the egyptian military has been a fairly consistent effort. if you look at the resurgence across north africa, libya, algeria, if you look at the resurgence, one of the few militaries in the region that is done a decent job is the egyptian military. it feels good to tell them, we will cut you off and you guys aren't around, but the system me that we don't take the problem seriously. forget egypt off low will be left there to prevent them from establishing a safe haven in the sinai peninsula? the second part of that is between israel and the broader
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arab world. part of the camp david accord was peace between israel and egypt with at least partially conditioned upon the fact we would continue to support both countries militarily and with foreign aid. i understand that this is a high price for the american taxpayer to pay. think is worth it to preserve the peace between eastern and hot tub egypt and israel. wait until you see what happens when agent reverts back to open warfare? charles: look to you have to say? >> the egyptian generals are not stupid. they have not gone to war because they know there would lose all of the ayatollahs and might end up in jail by the argentinian hunted did. they have not gone to a full-scale war for the same 40 years, and it is that because of getting aids but they know it would lose. the point is, egypt is that go to war with israel for the very good reason that these generals would be the ones who would lose the most. right now in terms of internal
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policy, we have no influence over whether or not there will be to credit, a dictatorship, but this aid is tied to us. given the tips of the 5 billion over the years. having an impact on the democratic process. when you read knowledge that in not going to change and coming weeks. charles: 30 seconds left. what is more important in this instance? the promotion of democracy or just anything to keep them up a? >> rather than choosing sides on a democracy issue will simply say the egyptian military it's an incredible job and suppressing the threat. a lot of work to do, but we have a suez canal is functional, an egyptian military that tries to integrate weapons flow. we removed funding to the military. things can get a lot worse a very. charles: things have not done too much better this week. more weeks like this and we may
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find ourselves at that decision. it doesn't the president might be leaning that way. we appreciate your expertise. thanks a lot. well, is looking like they could be the result of a man educated right here in the united states. the egyptian general who order started a military takeover from the muslim brotherhood was actually a student at the army war college of pennsylvania seven years ago. here with that part of the story, fox is jennifer griffin. what more can you tell us about this egyptian army general who appears to be calling all the shops? >> well, the general who is calling the shots, the leader responsible for the overthrow the president a crackdown on muslim brotherhood is well-known to the pentagon. as you mentioned, he studied in the united states of the army war college in carlisle, pennsylvania and 2006. he was brought here to study democracy.
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known as a quiet student to listened intently, he encountered many u.s. military officers who had just returned from a very bruising experience. he wrote his thesis on democracy in the middle east. whereas americans believe in life, liberty, and the pursuit of happiness islamic cultures cling to presence of fairness, justice and equality, unity, and charity. this does not mean a theocracy but a democracy based on islamic beliefs. >> a very quiet, polite, reflective contemplate if individual. he has none of the authoritarian personal characteristics that one might expect. however, he is very highly regarded by the core leaders in the egyptian army. >> secretary of defense has been the administration is to not --
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democratic point man. he spoke yesterday after the pentagon called off a high profile joint exercise slated for next month. one official described the conversations as workmanlike. the relationship continues amidst recognition of the u.s. has very little leverage right now. charles: fascinating stuff. thank you. time now for today's fuel gauge report. u.s. auto futures climbed for their sixth straight session. helping to fuel gains. selling in its fourth highest level this year and has gained about 4 percent of the past six sessions. the largest refinery in the united states will have to cut back production for two months. the refinery in port arthur texas may have to slash capacity by 75,000 barrels per day. the company blames a typing issue. primarily fix it could take
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until the fall of next year. officials one day may use force to open blockaded oil terminals. libya's crude oil output has been halved by the striking industry workers. they've brought many parts to a standstill. at the lowest level since gaddafi was ousted from power. next on "money," our rates consumers wanting a class action lawsuit against time warner cable? plus, it is franchise friday. part three. how to pit the perfect franchise and location. have you actually get the operation of the ground? to franchise owners will back to work as the ridge. did not want to miss this. piles of "money" coming out. charles: in [ phil ] when you have joint pain and stiffness...
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♪ charles: your tv is not experiencing technical difficulties. the time warner cable's tbs blacts third week and customers are fighting back. two class-action lawsuits of been filed. will the cost of a legal battle and more bad publicity during the standstill to an end or will it be an nfl kickoff in september 5th that finally knocked some sense and both sides? an attorney is specializes in class-action lawsuits and a top media it -- media analyst. the class-action lawsuit, will that move in the long list? >> you have to see it as a response from the public. the only vehicle to relieve
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voiced discontent. if you think you're going to actually be what makes it all come together and finally get these to tie-ins to come to an agreement, a pro when not. i think you need something like the nfl season, the impending nfl season as a cause the impending fall lineup altogether as something that is really going to push the pocket of force the hand of both of these sides that have to collapse on some of ground to get this back on there. the people coming together. had enough. paying for programming. charles: to losing, particularly cbs. the stock market, and i sure ones are missing out on that, then that's when their rubber hits the road. do you think that makes a difference?
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>> i do, but i think that the nfl, a sense of urgency from the party stash of some kind of compromise deal, but i also never expected that this would turn out to be an epic battle. in reality, or the last several years this kind of take down has become even more commonplace. consider the fact that in 2010 you only have to and take down this, two dozen top you have 100. just this year alone by some estimates barely one-third of all the designated markets and the usoc in some court of 2000 or a blackout. you get the sense of how it has become in terms of this kind of negotiation. charles: financially which organization has the most to lose? in other words, who might be willing to blink first from financial pressure? >> that is a question we it constantly.
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we have two companies that are evenly matched, i would argue. both companies are trading near all-time highs. both came to the second quarter earnings, continued aggressive return of capital. we did close to the nfl season, a leveraged is going to gradually shade from time warner cable to cbs because consumers are going to have even more compelling urgency. and i might also add that washington regulators might be more likely to get involved. charles: more customer of rage. >> you have a contract to you pay for something. you expect to get the other person.
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charles: what damages would i expect? the pga tour. i saw death mayor. what am i asking for? why asking for monetary damages? >> how many people are designated will be determined down the road when the class is certified in the have plaintiffs you're basically going to look at how much and what portion of the content of what the pay for they have been deprived of. that will boil down to a monetary amount on a case by case basis. charles: i hate to say, what is outside the lawyers will make more money off of that ben of your or the participants in a lawsuit. >> oh, never, charles. before we go, the overall measure of the television industry, rapid change is coming. what are you seeing? is anything big?
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>> what is happening is netflix and amazon and gloom are the ones making big kinds of negotiations much more complicated. you just heard that sony and viacom have agreed on a content deal for virtual ms so bad deal. when the next deal rolls around, and there will be paid tv providers of all point to this and say, you're selling the content. exclusive. and it will be even more creative and complicated. charles: more lawsuits. more options. you guys are fantastic. thank you. okay. the american airlines u.s. air merger had a rough week. the department of justice trying to ground will be the world's largest airline on behalf of you, the customer. but our own tom sullivan questions the logic. >> well, the department of
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justice has sued to block the merger of american airlines and usair ways. they argue it would lessen competition and hurt consumers by government the price of an airline ticket. i appreciate the good intentions believe it will do just the opposite, especially right after allowing eight airlines and eroded to the exact same thing. we all know that until just recently airlines have so much competition, they underpriced each other with tickets below their break-even point. airline travel is cheap but it drove a number of the month to bankruptcy. so now that they're making money , that's a bad thing? even if you think it is too expensive, should the government with a free-market fit the press? people will will have to adjust prices down to meet the demand. even a star of but, along with cheaper prices.
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do you really think by blocking this merger ticket prices will magically come down. charles: you can guess this show this weekend saturday and sunday right here on fox business. next on "money," part three of our franchise read a series. how'd you get this thing going? hard to owners are here to give us a step-by-step way. you made money today? it was one of the worst weeks for stocks. these as having no problem finding a silver lining. the answer is coming up. not a rhetorical question. you never have too much "money"? ♪ ask me what it's like
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♪ charles: one state is rolling in
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dough. home prices in orange and los angeles county are overvalued by double digits. so is california on the brink of a housing bill will? the author of the study. begin economics. guys, you know, we hear bubble alive when it comes to new york city, san francisco. most people that understand. very unique. >> even though prices of the little overvalued right now, it's not a bubble there are anywhere else in the company. when it's about we have to look at where prices are compared to were there. one of the best guides is where they have been relative to income in rent.
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keep in mind, during the last ticket price is in southern california. >> 70% or more overvalued. so prices today look a lot closer to normal than they do to where they were in the last decade. a long way to go. charles: considering buying. over pain, but not by the most of the cut. is that the lungs and we're using here? >> the concern of lovell is that when prices get into bubble territory : a flood free from market fundamentals you get a bigger risk than the price. overvalued about 10% in southern california. mortgage credit if anything is still too tight, not to lose, and if anything we're under building. so for all these reasons this looks nothing like last decades
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bubble. charles: as a nation we have gone through them all right. the stock market bull. i think we have the baseball card bubble, the real estate bubble. every time something appreciates in value when naturally say, hey, it's a bubble. are we just overreacting? >> is really is an overreaction. you have to go back. i see the word bubble. is not because of price increases. price increases by themselves don't give you that can deliver mission. you need silica fundamentals. price relative to income in rent, there are other parts of the market. how tight or loose credit is. back into does a six we head into loans. that is when you start calling this a bubble. we had over building. you have investors. you have them now, but they're not buying the flat. they're buying and holding in renting out. given all that we are nowhere near bubble. any thing, interest rates today,
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i would argue the nation as at least 15 percent, perhaps even 25 percent more appreciation before we get back to something resembling a normal level of affordability. these price increases, the reversal of a negative bubble than an actual new bubble forming. charles: this house a recovery that we talk about, politicians say victory laps, when i looked at closely is used to be -- in the use the word investment. it seems to be a professional investor phenomenon. morgan stanley opened their ninth line. first-time buyers have not materialized and and it feels like main street has not taken the bait. is there some point when after rally for the housing recovery is a truism in place? >> it's a great question. your answer is that would take the bay if they could. the problem, of course, over the last five years the regulators have built this monster that
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every time there is of foreclosure we're pushing more and more of the liability. quite naturally, the mile is one of their credit record goes on in the salon. this is the natural result. candidly it is a shame. this would have been a wonderful time for the middle class to get back all the wealth they lost. they are not being given the ability to do that. instead it's the big investors moving to take advantage of our raw charge which is to the white house does not want to take a vantage of this. the law of unintended consequences. charles: positive on housing in manuel see that shift from main street and to housing and everyone could get a piece.
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thank you. so did you know we can't get enough "money" on the show. but a billion dollars could be the check. we're going to get a live tour next. at the end of the day, as always, it's always about "money." ♪ my mantra? always go the extra mile. to treat my low testosterone, i did my research. my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as uneected signs of puberty in children or changes in body hair or increased acne in women may occur.
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you know, from our 4,000 television commercials. yep, there i am with flo. hoo-hoo! watch it! [chuckles] anyhoo, 3 million people switched to me last year, saving aaverage of $475. [sigh] it feels good to help people save... with great discounts like safe driver, multicar, and multipolicy. so call me today. you'll be glad you did. cannonbox! [splash!] charles: you can never have too much "money." no one knows that better right now. he is surrounded by a billion dollars worth of what else, money. at the world's fair of money in chicago. tell us some of the outrageous
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things are looking at right now. >> it does not give more money than this. here is my headline. this one to 13 american buffalo 1 ounce reverse proof point. we have some up close and personal pictures. this thing has headlines all they to buy this. gold prices down, not for physical gold. people really love this stuff. it's a reverse proof, so it looks odd, but people of the. take a look of some of the lines here today. it started selling earlier in the wake. 1690 and people were offering a $200 premium. this is the new benjamin they have. october 8th. this was delayed. allow the printing problems with this. up close and personal pictures. the loose strip and there, the security strip, that thing is supposed to keep the counterfeiters update.
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it is kept the printers a day because they have a lot of problem printing one. if you really want a lot of benjamin's command is now impingement command is woodrow. take a look. the hundred thousand dollar bill on display, you want to know what president is on the biggest denomination bill, woodrow wilson, a democrat. these were bank to bank transactions back in the 30's, '40's, and 50's. they don't use the many more. it's all electronic. speaking of which, treasury bonds command you ever seen at billion dollar bond sitting right here in this case? at billion dollar treasury bond. though coupons for the interest of the bottom here, this was issued in 1969. the interest coming to august 15th, the first on 1975. the first coupon, you put those in turn the men and there you
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go. the big story about hurricanes and destroying a bunch of barrell bonds which as you know, this is like real money if you have a bearer bond. tickets destroyed it's a problem . a half billion dollars one. surrounded by "money." i'm sure you wish you were here. charles: you're absolutely right. i don't care what political party your on. see you later. it's yours. this time now for franchise friday. our weekly series as close as you get to first and experience from people were actually going to the process right now. it this week is all about getting it up and running. starting off with her first franchise from newcomer. those guys welcome back to the show.
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a real quick recap. what has happened since last summer spoke? >> they're looking for a location which is hard. the challenges right now, a couple of places which is good. and going to different places in the areas. i'm looking just to see the type of traffic coming in and other restaurants in the area. charles: didn't think about that before? >> no. charles: a you just knew about a franchise, but it was cool and said a lot of time up they say a pizza parlor would be fantastic. your doing it the other way around. >> backwards. charles: revolutionize the industry. you have done this before. you have a little bit background community organizing.
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learn from your mistakes and move toward. the subway which is a little bit more established. alitalia the story. antigens in 1985 to get the franchise. and i'm this close. i didn't. my son's so it's the fourth. you have a well-established name does that make it easier? >> likely to come to a store. charles: it also comes with the extra pressure. a lot tougher. even when it comes to the location, did they get a chance
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to speak on and on? to run that pass them? >> your development agent, and they go hand-in-hand. bring the location. help you find one together. these neighborhoods. charles: said he had a chance to go to the regulatory process? i don't know if you have. i know john probably has. i like the redefined out, it's not zoned for cheese. selling a bakery, we don't do grilled cheese sandwiches. >> seven going to the township, the locations them seeing to say okay, for restaurants and to make sure. a lot of the times of the landlord, it was protected. i'm sure john knows it. we have this than you now. charles: you have a restaurant, you'd want them to do the same for you.
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>> not all. fair competition. you don't want someone next for you selling the same thing. charles: are you still excited or feeling a little nervous? in every your head? >> i'm excited because a bigger going to land something next week and even looking in other freestanding location possibly. charles: go ahead. >> iphone as to a question about the buildup process and use their findings by right now, how long do you think is wrong to take for build of once you do like in the location? christophersen were looking at the next couple of weeks is already almost as much as a positive. so it has a better minority. charles: i want to piggyback off of that because are running at a time and everyone must know these things. the clock officially starts to take when you get the spot with the company to. they want you once you find a spot, you have to get it built up? >> they give me six months for the first location in up to four
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years for the other three. the landlords, and all depends on the landlords. sometimes the sun as he signed a lease that when you start paying representative. charles: you're under pressure to be fast on a matter what. >> no, this one is really good. i have a bill out time of 120 from the landlord. charles: will want to talk about next week is employees. to looking around for new employees course always. charles: to the thought that? >> is going to be a journey. charles: that will be a heck of a journey. that is a will focus on next friday. fun going of the journey with the guys. appreciate it. up next on "money," when you some 91 million in stock you probably should not advertise an unpaid internships a few days later. facebook said cheryl sandbur is falling face first into a storm of controversy, and we have it all on "spare change." stick around. you can never have too much "money." ♪ (announcer) at scottrade, our clients trade and invest
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♪ charles: it's time for some friday fun with "spare change." joining me now, here is what everyone is talking about. the latest scandal, the ceo worth hundreds of millions of dollars by the way is in an ironic situation after sparking controversy with their theory that women have to press are to be successful and fight for fair compensation. her foundation posting an ad looking for an intern to work for free.
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that started a fire storm of commons and the foundation. she then backpedaled and said it will pay the interns. your first reaction? >> a public relations fail. first of all, hypocritical. obviously unpaid internships a very controversial at the moment. in fact, it's illegal sometimes not. you have the all black fund income teeseven turn controversy charles: but her of all people. go out there and get equal pay, go out there and lynen make the sacrifices and go do it, but if you work for me be ready to work for free. charles: precisely. that was 91 million. >> this is not an issue of her character. a very intelligent and encompassed businesswoman who is actually set up this organization to advance the female community. there is irony, but not really. this is a grassroots organization.
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she's taken time of her life to put energy into developing something that will be a platform to give women the ability to have equal rights and equal pay in compensation in the world and their work and their representation in government and things like that. to be a part of the organization and be an intern in something like this is an amazing experience. charles: i have to tell you, that is what someone may tell a woman to enter their business. you want to work in my pizza shop, you're going to get grassroots. that's when she is fighting for. getting wages. you just give it out. >> we are specifically talking about internships. these are not just internships or they're looking for a woman to fill the position. a woman or man. i was an intern. i learned everything about my industry from being in in turn. i worked for free and i've learned a lot. charles: but for her, her stated goals, and the stated that, this does not look good.
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>> the privilege comes toward to be an intern. that's the problem. it does not work well. this was a big public-relations failed. charles: the good thing is now they're offering to pay. she is seen the so-called era for ways. and of the getting was questioning her what she cares about our she as a person, but you have to say that maybe this comes with the territory when you try to do good deeds sometimes you have a few missteps. thank you and have a fantastic weekend. all right. up next, who made "money" today? they found the silver bullets to beat the bears. all the answers right after this because you can never have too much "money." ♪
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if you've got it, you know how hard it can be to breathe and man, you know how that feels. copd includes emphysema and chronic bronchitis.
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spiriva is a once-daily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours. you know, spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathg suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd. spiriva helps me breathe better. does breathing with copd weigh you down?
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charles: here is to make money today. optimism over a stronger global e economy demand for the precious metals but a civil -- silver is the key component. said biggest one week gain since a member to thousand also making many in the taser is best known for its done done but in arizona in dallas they adopted with the officer camera system coping with record revenues in this quarter. with a gain of nearly 20%. making a mountain of money the smart phone maker going up for sale this weekend and if they are ousted by the new owners they will get a
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golden parachute worth $56 million. not too bad. visa is in a win-win situation. i hope you made money today and willis of france's will be back on monday. tune in and have i a wonderful weekend. >> alternative investments are catching on and want to get ahead your company? how to succeed without getting down and dirty. dogs and the i pad? why fido should get his paws on one. tonight. "the willis report." gerri: a warning for investors' top story the newest and hot as class of

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